SME IPO: Sealmatic India’s public offer subscribes by 45% on Day 1 driven by retail investors

SME IPO: Sealmatic India’s initial public offering (IPO) subscribed by 45% on the first day. The issue received strong demand from retail investors. While institutional and non-institutional investors showed muted response. The price band for the IPO is fixed at ₹220 per share and ₹225 per share. Bidding in the IPO opened on February 17 and will be allowed till February 21st.

As per BSE data, cumulatively, the SME IPO received bids of 8,71,200 equity shares against the offered size of 19,30,200 equity shares — subscribing by 45% on Day 1.

Qualified institutional buyers (QIBs) and non-institutional investors (NIIs) made no bidding on the first day. However, the portion reserved for the retail individual investors’ category subscribed by 87%.

Of the total issue size, 40% is reserved for qualified institutional buyers, while 18% is kept for non-institutional investors. The rest 42% is kept for retail individual investors.

The minimum lot size is 600 equity shares. While maximum bidding for institutional and non-institutional investors is kept at 18,04,200 equity shares and 14,24,400 equity shares respectively, as per BSE data.

Ahead of the IPO, the company received bidding of 5,69,400 equity shares at the upper price band of ₹225 per share from anchor investors — aggregating to over ₹12.81 crore.

Manish Khanna- Co-founder at Unlisted Assets said, “The company has shown consistent financial performance with about 30% growth in Profit After Tax in the last 3 years.”

Khanna added, “The issue price for Sealmatic India Ltd is ₹220- ₹225 per share. According to market sources, the IPO grey market premium (GMP) is around ₹30 as on 17th Feb 2023, so the expected listing price for IPO at the price of Rs. 225 is Rs.255 (upper band price plus the current estimated GMP) implying a premium of nearly 13% over the upper band price.”

ISK Advisors is acting as the book-running lead manager for the public offer. While KFin Technologies is the registrar of the issue. ICICI Bank is the sponsor bank.

Sealmatic designs and manufactures mechanical seals and associated products mainly for oil & gas, refinery, petrochemical, chemical, pharmaceutical, fertilizer, power, mining, pulp & paper, aerospace, marine, and many more industrial applications.

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